UDP 520 Homework #2 Inferential Statistics I (20 points)

Available 10/23/03, due 10/30/03

Question 1:

A local economic development agency in the city of Moses Lake matches unemployed workers to potential employers in the region, functioning as something of a “one-stop-job-shop.” The agency has a budget to handle 100 clients a day. The agency claims that recent economic trends have caused their average caseload to increase, and the fear of Boeing not locating the new 7E7 facility in the state (particularly in Moses Lake) is making caseload matters worse.

You work for the economic development agency. Determine if the average caseload for the agency is indeed higher than 100 people per day. (Assume that you have drawn a random sample of agency records for 61 days and have found that the average caseload was 106 people per day and the standard deviation was 25 people.) It would be best to clearly show your steps, as your boss likely doesn’t understand statistics as well as you do.

Question 2:

Sub-areas of cities, such as defined neighborhoods, can qualify for special HUD housing loans if the sub-area's household income is less than 75% of the "adjusted gross household income" (AGHI) for the city as reported by the state Department of Revenue each year. The reported AGHI for Madison, Wisconsin in 1999 was $24,024.

The Vulture Depths area located near campus is a defined neighborhood of l00 households. In an effort to qualify for the HUD program the neighborhood association conducted a random survey of 30 households asking about their 1999 household incomes. The results of this survey are reported below. Using only this available data, from the perspective of an analyst for the neighborhood association, determine if Vulture Depths should qualify for the HUD program. Again, it might be best to show your steps to the neighborhood association.

Household # / Income / Household # / Income
01 / 12,100 / 16 / 14,500
02 / 30,000 / 17 / 18,500
03 / 19,040 / 18 / 13,900
04 / 6,000 / 19 / 24,090
05 / 24,000 / 20 / 16,700
06 / 23,200 / 21 / 17,900
07 / 22,010 / 22 / 15,000
08 / 12,700 / 23 / 14,700
09 / 19,450 / 24 / 13,200
10 / 15,000 / 25 / 10,010
11 / 24,300 / 26 / 17,310
12 / 16,500 / 27 / 20,100
13 / 21,290 / 28 / 16,500
14 / 20,910 / 29 / 18,300
15 / 19,720 / 30 / 16,500